How To YieldBoost STLD To 7.2% Using Options
July 18, 2024 at 11:39 AM EDT
Shareholders of Steel Dynamics Inc. (STLD) looking to boost their income beyond the stock's 1.4% annualized dividend yield can sell the January 2026 covered call at the $165 strike and collect the premium based on the $11.60 bid, which annualizes to an additional 5.8% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 7.2% annualized rate in the scenario where the stock is not called away..